United States Inflation February 2017

United States

United States: Inflation reaches five-year high in February

March 15, 2017

Consumer prices, adjusted for seasonal factors, increased 0.1% from the previous month, marking a notable deceleration from the 0.6% rise observed in January and matching market expectations. February’s result was the smallest monthly increase since July 2016 and stemmed mainly from lower gasoline prices, which more than offset price increases for food and rental accommodation.

Inflation accelerated further from 2.5% in January to 2.7% in February, hitting the highest level since February 2012. The increase caused annual average inflation to inch up to 1.5% in February from January’s 1.4%.

Core consumer prices, which exclude food and energy prices, increased 0.2% from the previous month in February, which came in slightly below the 0.2% rise observed in January. Core inflation was steady in February at January’s 2.2%.

Although the Federal Reserve targets an alternative measure of inflation called the personal consumption expenditures price index (PCEPI), it also follows the core inflation measure closely to judge whether inflationary pressures are increasing in the economy.

FocusEconomics Consensus Forecast participants expect inflation to average 2.3% in 2017, which is unchanged from last month’s forecast. For 2018, the panel also expects inflation to average 2.3%.

Author:, Economist

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United States Inflation Chart

USA Inflation February 2017

Note: Year-on-year and month-on-month variation of seasonally-adjusted consumer price index in %.
Source: Bureau of Labor Statistics.

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